Clint just posted this list of ten ways web analytics can improve your website's business.
My less distinguished summary:
- significantly educate your visitors
- distinguish between first timers and returners
- use exit page reports to find trouble spots
- use entrance data to improve relevance
- maximize data on marketing ROI - conversation rates from different referral strategies
- increase usability
- increase targeted messages thus relevance
- use testing to look at how to improve (He has a much more academic description)
- use Flash for more detailed usability information
- use services to collect user data to help improve site.
Really need to read is version for details but really good information for a way to improve a site.